Five Dangerous Traps to Be Aware of When Shopping For A Realtor
When shopping for a Realtor, as in anything you do, having helpful and reliable resources can make or break the deal. Having the right person as your agent makes it easier to succeed in finding that perfect place to make your home or finding someone who will be right for your home. In either case it is that acquisition and selection process that defines the success of the transaction. It may seem too difficult to get a good Realtor to help with buying or selling. This article presents a guide for making the decisions you will need to cover.
1. Letting An Agent “Buy Your Listing”
The worst thing you can do when shopping for a Realtor is choose an agent based on their list price recommendation. You shouldn’t even ask what they recommend as a list price when interviewing an agent . Ask them about their experience, ask them to supply a spreadsheet of their list price to sales price ratios, ask them to show you how many times they have had to get a price reduction in that last year. That last number should be ZERO or very low in a seller’s market. Choose the agent based on their resume and marketing plan. Choose a Realtor® that you are comfortable working with and can trust. Together you can decide on a list price based on your home’s features and the comps.
2. Thinking That Only Big Real Estate Firms Have the Best Realtors
Some who are shopping for a Realtor may believe that only the large real estate companies will have the best Realtors. Though they may have excellent staff working for them, consider small companies as well as larger ones in your search.
3. Failing to Ask About Compensation
In choosing a Realtor, be sure to find out about what they will receive in the way of compensation for the work. Every Realtor, on the selling side, will charge a certain percentage of the final price as a fee for their expenses and effort. The fee is often negotiable, and it is important to ensure the fee is consistent with the market. A percentage that is well below what others are asking can be trouble too; in a world where you get what you pay for, a low fee offer will most likely leave you short on service. The buyer’s representative, on the other hand, is paid from the commission amount set by the seller. For this reason, if you are a buyer, there is no cost for your representation.
4. Failing to Find out About The Realtor’s Expertise
It is also beneficial to ask questions concerning their expertise. Answers pertaining to their length of time working as a real estate agent, length of time with the firm and any type of business specialties they may have under their belt are all important. Realtors will gladly tell you about any awards thty may have received, and sometimes these will indicate measures of success such as being in the top percentage of agents in the area or even nationwide.
5. Being Reluctant to Ask Enough Questions
A final mistake which anyone shopping for a Realtor should steer clear of is having any hesitation at all to ask potential Realtors enough questions. Some feel as if they are being too much trouble and do not want to bombard the candidate Realtors with a lot of questions regarding the fees, procedures, etc. Asking questions is the only way to really know if you’ve selected the right one.